Human Relations Theory - Case Study Example

Human relations approach is one of the major advancements in the history of management sciences. With world compressed into one global village and industries becoming more competitive, organizations are expected to use best employer practices in order to yield maximum efficiency out of their workforce and have necessary effectiveness in their operations accordingly. Although this theory has been inculcated by many organizations into their management practices however degree of inclusion varies. Primark is a leading apparel chain of stores with over 100 stores all over Britain. This employer exhibits higher degree of dedication to corporate citizenship and Ethical Trading Initiative. By using human relations approach, it can be identified how successful management of Primark is, in making its workforce autonomous, job-satisfied and motivated. Before human relations theory, taylorism acted as the gist of management and organizational leadership that supported the notion of financial incentives and strict procedures with defined guidelines being the criteria of effective organizational management. However, with the help of series of tests and experiments, Elton Mayo and his successors mainly Douglas McGregor and Abraham Maslow managed to provide a better insight of mechanism through which leaders, employees and procedures are interconnected in an organization (Tompkins, 2005; Miles, 1965). According to this approach, human factor plays a vital role in the functioning of an organization. Hence, employees cannot be driven by incentives only and their personal and social needs are required to be satisfied (Jones, 2008). Hence, through human relations approach, Elton Mayo attempted to provide an amalgam of informal and formal side i.e. defined procedures and management practices, of an organization (Miles, 1965; Dubrin, 1992). Critical and comparative analysis of classic and human relations theory indicates that by human relations approach, socialists attempted to provide a mechanism through which work routines and environment can be altered with reference to satisfying social and emotional needs of the workforce which would result in productivity in performance in turn (Rebore, 2002). On the other hand, classical theory illustrated rationalization of work models. Some of the basic principles of human relations approach include decentralization, participatory decision making and development of self-motivation in employees. In order to do so, various strategies have been designed that address non-monetary part of work based benefits. Examination of these three doctrines illustrate that organizations require a cooperative environment within which employees’ work morale acts as a catalyst for organizational development (Rebore, 2002). Earlier management theorists emphasized on highly defined and strict management practices that were replaced by decentralized hierarchy. Through this principle, workforce was given more autonomy by formation of specialized teams and departments. Segregation of decision making authority introduced a new concept of lateral communication that fostered development of informal communication channels. With development of decentralized teams and departments arose a need for participatory decision making. Hence, management’s control of span reduced but it gave rise to the need of knowledgeable work force that is able to make decisions and communicate them without necessary supervision by managers. This concept increased responsibilities of work force and required employees to be self-motivated in order to perform autonomously with higher authority and responsibility (Tompkins, 2005). Hence, role of managers enhanced from here which required them to devise procedures that would develop trained and skilled work force along with designing monetary and non-monetary rewards structure and effective communication mechanism between employees and management. In the light of these doctrines, it can be said that managers are required to understand human needs of their employees. Along with fostering formal communication, managers should also utilize informal communication for gaining trust of subordinates. Since subordinates look up to managers for supervision, it is necessary to adopt communication styles that would allow subordinates to share their concerns effectively (Tompkins, 2005; Hersey and Blanchard, 1977). Higher job security and satisfaction is another criterion for work force to be self-motivated. Inclusion of employees in general decision making would make them more motivated and productive in their given jobs. This theoretical analysis has provided necessary insights about applicability and effectiveness of human relations approach. However, it is important to determine how this approach is valid and related in today’s corporate culture when work practices, organizational models and business processes have transformed greatly. Like stated earlier, in order to analyze effectiveness of this approach, Primark Chain of Stores is used as a case study. The head office of Primark is situated in relatively developed part of the world i.e. Dublin however its suppliers and work force are present world-wide with operational employees present mainly in third world countries (Primark, 2013). Critical analysis indicates that in past few decades, the concept of corporate citizenship has become known and famous as a criterion of responsible organization worldwide. This concept requires organizations to be considerate towards environment, communities and their workforce as well. In the current economic scenario, where competition is cut throat and pressures from civil society and regulatory bodies are increasing greatly, employers have to provide a work environment which is suitable for physical and mental well-being of workforce. It can also be said that in order to achieve competitive advantage over their competitors, organizations are required to have a work force that is highly trained and skilled in order to provide maximum efficiency (Rose, 2005). Primark has extensive operations with over 120 stores in United Kingdom. Being an eminent name in high-street retail stores, Primark has managed to retain its goodwill through ethical practices. Its compliance to Ethical Trading Initiative (ETI) has given rise to formation of a new website which promotes its ethical practices greatly (Primark, 2013). ETI ensures that all it members provide suitable and healthy work environment to their employees and employees are allowed to be part of trade unions for protection of their rights. In addition to that, this protection of workforce is extended to suppliers of members of ETI therefore Primark is responsible for wellbeing of its suppliers workers employed in Bangladesh, India and China. This major responsibility due to ETI alliance and extensive business operations require Primark to be more cautious towards retention of its workforce. In today’s competitive environment, organizations cannot afford to take risks that may tarnish their goodwill and branding and undermining development of their workforce as that would be reflected in their quality and overall productivity. Human Relations theory directs that workforce should be decentralized and self-motivated (Knowles, 1955). Relating this notion to current practices of Primark, it can be seen that its upper management is well-versed with this concept. With over 120 stores scattered all over United Kingdom, this high-street retailer needs to and has already provided necessary autonomy to its regional teams. These teams are responsible for supply and demand management along with taking care of necessary procurement and supply chain activities. Consolidation of all this authority and responsibility only within upper management would have lead to strict procedures that would have reduced opportunities for workforce to develop and produce quality accordingly. Apparently, Primark is well-versed with the concept f employee empowerment. Its alliance with non-government organizations in Bangladesh has allowed it to examine working conditions in its suppliers manufacturing units and apply necessary code of conduct which requires environment, legal and social compliance to ETI, have minimum wage model, and provide occupational health and safety along with first aid and fire safety. Another major principle of human relations theory is to develop work force and enable them to have job safety and satisfaction. Further examination indicated that in order to continue its high-end operations with maximum efficiency, Primark requires a workforce that is well-trained and satisfied with their employer. Therefore, it has introduced regimes like The School Project, Education for Women that helps its workforce and its supplier’s employees to build necessary skills inventory (Primark, 2013). Furthermore, for employee job security and satisfaction, other policies have been introduced that shows its adherence to commitment of employee wellbeing. Policies like Better Rights for Women Workers, Supporting Home based Jobs and Towards a living wage make its operational staff feel valued and have necessary job security (Primark, 2013). For environmental considerations and in the pursuit of having a healthy work place, Primark has attempted to mitigate the use of hazardous work practices such as use of sand blasting in denim production. This overall analysis of Primark and its ethical practices indicate that it is highly diligent towards its operational workforce which is mainly employed by its suppliers in developing countries. However, its website and other information available on social network do not indicate if it is equally responsible for its workforce in middle management and operational staff working at retail stores. Although requirements of manufacturing facilities are relatively high in terms of employee wellbeing however employees working in retail stores reflect actual management philosophy of an organization. There are many high-street apparel brands in UK and in order to have clear edge over others, Primark is required to use highly diligent and skilled work force that would add value to quality of services and experiences provided to its customers. Like any other retail stores, it has clearly segregated its workforce in UK into head office, retail stores management and retail sales operations. Such division allows employers to have uniformity in its policies while addressing needs of a particular cadre or team. It also shows that Primark has complied with the doctrines of decentralization and participatory decision making. Retail stores model allows tactical managers to have complete autonomy over operations of single unit and hence deal with a small count of staff accordingly. In such work settings, autonomy and responsibility are relatively high. For job security and satisfaction, Primark is required to provide its workforce with uniform compensation benefits that not only provides them with return on their efforts but is also market competitive. Such approach is necessary to retain employees. Economic analysis indicates that for taking an employee onboard and training them requires an investment from an employer. Furthermore, for replacing that employee, similar cost is incurred again that does not provide substantial return on investment to employers in short-term. Therefore, Primark is required to keep such economic cost benefit analysis in consideration while devising monetary and non-monetary benefits. In addition to that, its managers are required to ensure that organizational mission and vision is communicated well to its work force. Apparently, Primark has paid more attention to ethical compliance which benefits its supplier’s work force greatly. Analysis of Primark’ website indicated that it also provides necessary training to its workforce which allows employees to function in a productive manner and also helps them overcome anxiety that comes with lack of knowledge (Hersey and Blanchard, 1977; Benton and Halloran, 1987). Such measures make employees trust their employers and helps managers in retaining them. Other than indirect supervision, guidance and mentoring from managers, workers at Primark are also provided with comprehensive trainings that also help them in gaining literary knowledge related to their work (Rose, 2005). Another major area of Primark’s effective leadership is defined career paths. It has divided workforce into three segments (as stated earlier) and has defined development levels within them. Such career orientation enables employees to be aware of career opportunities available and also pursue for them as management’s expectations are known. In addition to that, Primark has adopted a compensation structure that is market competitive and addresses social and emotional needs of the employees. Other than training and effective supervision, it provides benefits like insurance, annual leaves, flexible work hours, pension, childcare scheme and bonuses (Primark, 2013). However, one drawback found was non-uniformity in application of these benefits e.g. Health insurance (available for Assistant Manager Level and above) and Bonus scheme (available for Deputy Manager and above). This segregation can also lead to lack of motivation in employees (Rose, 2005; Primark, 2013). Critical analysis of Human Relations theory and its comparison with existing work model of Primark chain of stores indicated that its management is well-versed with general doctrines of human relations approach. However, it appears to be more concerned about ethical compliance which benefits its suppliers and its own employees in developing countries including India and Bangladesh. Despite its commitment to building safe workplace for operational workforce, not many efforts are visible for its employees working in retail stores. Considering the fact that this layer of staff represents Primark to general customers and act as its front face, job dissatisfaction in such staff can affect financial performance and goodwill of Primark as a service provider. Therefore, managers of this organization are required to address social and emotional needs of its employees according to human relations approach and devise policies and procedures that provide autonomy and job satisfaction to its work force while making them responsible for their decisions and communication undertaken by them. References Benton, D and Halloran, J. 1987., Applied Human Relations: An Organziational Approach. Prentice Hall. Dubrin, AJ. 1992., Human Relations: A Job Oriented Approach. Prentice Hall. Hersey, P and Blanchard, K. 1977,. Management of organizational behavior (3rd ed). Englewood Cliffs, NJ: Prentice-Hall. Jones, I. 2008., The Human Factor: Inside the CIA's Dysfunctional Intelligence Culture. New York: Encounter Knowles, WH. 1955. Personnel management: A Human Relations Approach. American Book Co. Miles, R E. 1965., Human relations or human resources? Harvard Business Review, 43(4), 148–157. Primark Inc. 2013., About Us [online], Available at: http://www.primark.co.uk/ [Accessed 14 March, 2013]. Rebore, RW. 2002., A Human Relations Approach to the Practice of Educational Leadership. Pearson. Rose, N. 2005., “Human Relations Theory and People Management”. Studying Organizations [Online], Available at: http://www.sagepub.com/upm-data/9805_039184ch02.pdf [Accessed 14 March, 2013]. Tompkins, J R. 2005. Organization Theory and Public Management. Thompson Wadsworth. Read More